Catalogers' Stockings Can Still be Full, Even in Face of Looming FedEx Pilot Strike.

ORLANDO, Fla.--(BUSINESS WIRE)--Nov. 19, 1998--Striking Federal Express pilots could strike fear into the hearts of American catalog retailers, putting at risk tens of millions of dollars in holiday sales, despite the fact Federal Express says it can handle the impact of a strike.

On the other hand, at least one industry source says there is a solution, if - as many expect - the FedEx Pilots Association, which represents 94% of the company's pilots, walks out.

"If catalogers don't convince their customers to shop early and avoid the last-minute shopping for which they are famous, it could be disastrous," said Bob Poe, executive vice president of Connextions, an Orlando-based catalog servicing company.

Connextions will employ a technology that has been successfully used as an early warning system in emergencies as a way to warn catalog shoppers that placing orders early will save them heartache if a strike occurs. "Our RealCall(tm) system can alert up to a million customers a day," said Poe, "and we think will actually result in increased sales for the catalogers who use it. RealCall(tm) helped alert residents to evacuate Florida's wildfires this Spring, it has been used as an effective tool in political campaigns and it is in use by major publishers nationwide to retain subscribers."

He said RealCall(tm) is a computerized telemarketing system capable of delivering a million prerecorded messages a day directly to answering machines and consistently delivers better response than direct mail and traditional telemarketing. "Catalogers can't possibly call all of their clients, and direct mail would take too long," said Poe, "but this tool lets them put a message on the customer's answering machine when they are at work, encouraging them to take the time to make their purchase now."

Industry magazine Catalog Age reports U.S. catalogers generate $95 billion in annual sales. In January, Catalog Age surveyed mailers and found they are spreading shipments across the delivery industry and that the trend was away from Federal Express and toward USPS. Regardless, a FedEx strike will put stress on the entire system and create havoc for consumers, Poe predicted.

"It isn't enough for catalog companies to find alternative carriers," said Poe. "They have to deal with the personality of their buyer. My experience tells me if you look at the profile of their average customer, buyers are likely to make other shopping plans before a strike ever occurs. The catalog industry has to react quickly to this possibility, regardless of whether the pilots walk off the job, and we have the staff and the technology to help them. The good news for Fed Ex is that they will still get the business if catalog companies act fast."

Connextions provides comprehensive call center and fulfillment services for the direct marketing industry through Internet, direct mail, catalog and electronic media retailers. Connextions is a subsidiary of Magnetix, one of the nation's largest providers of audio and video duplication services, including sound editing, mastering, packaging and distribution.

Together, the companies provide a single source for fulfillment, encompassing inbound and outbound call center services, full service packaging, database development and management, direct mail and distribution. The companies' clients include IBM, Scholastic Books, Harcourt Brace and Company, Audio Tech Business Book Summaries, Great American Audio and the United States Library of Congress.